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Malls Rebound to Become Top-Performing U.S. CRE Sector
Widely considered an endangered property type following the COVID-19 pandemic, malls are now the top-performing sector in the U.S., the Wall Street Journal reported. Mall values are up 13% over the past year, more than double the increase in overall commercial real-estate prices, the WSJ reported, citing Green Street data.
“In terms of how we think about the malls today fundamentally, this is probably the best it’s felt post-Covid,” Ronald Kamdem, head of U.S. REIT and CRE research at Morgan Stanley, told the WSJ.
Although lackluster returns in multifamily and office are pushing some investors toward retail and mall properties, malls also have resilient consumer spending and limited retailer bankruptcies in their favor. Shares of Simon Property Group surpassed their previous record high in July for the first time since 2016, and Unibail-Rodamco-Westfield has reconsidered its plans to exit the U.S. mall sector, recently buying out its partners in two West Coast properties.
- ◦Lease
- ◦Economy
